Question

ots) Mark has preferences that can be represented by the following utility function: U(x,y)= (18+x)(+1). Sarahs utility func
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Au mark wility function. U(x,y) = √ (18+) (+1) Sarahs Wility function U(x,y) = 6x + 6oy - 4x + 2xy-24y +29 OPNUUPPPPPPP 1944MRSME Mux lyti) 21184 + xy + x +18 sol u ategt og tefias (18+) MRSM - Y+1 + xy - podtx- (Pixo 18+ 2 Sarahs utility function

Add a comment
Know the answer?
Add Answer to:
ots) Mark has preferences that can be represented by the following utility function: U(x,y)= (18+x)(+1). Sarah's...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 3. Sam's preferences are represented by the following utility function: U(x, y)-min(4x, 2y a. Are any...

    3. Sam's preferences are represented by the following utility function: U(x, y)-min(4x, 2y a. Are any of the two goods in his utility function "essential"? b. Draw Sam's indifference curve for utility of 8 and utility of 16

  • Joe has a utility function given by u(x, y) = x^ 2 + 2xy + y^...

    Joe has a utility function given by u(x, y) = x^ 2 + 2xy + y^ 2 a. Compute Joes marginal rate of substitution, MRS(x, y). b. Joe’s cousin, Alex, has a utility function v(x, y) = x+y. Compute Alex’s marginal rate of substitution, MRS(x, y). c. Do u(x, y) and v(x, y) represent the same preferences?

  • 3. Suppose an individual has perfect-complements preferences that can be represented by the utility function U(x,y)=...

    3. Suppose an individual has perfect-complements preferences that can be represented by the utility function U(x,y)= min[3x,2y]. Furthermore, suppose that she faces a standard linear budget constraint, with income denoted by m and prices denoted by px and p,, respectively. a) Derive the demand functions for x and y. b) How does demand for the two goods depend on the prices, p, and p, ? Explain.

  • Problem 1 (10pts) Jim's utility function is U (x, y) = xy. Jerry's utility function is...

    Problem 1 (10pts) Jim's utility function is U (x, y) = xy. Jerry's utility function is U (x,y) = 1,000xy +2,000. Tammy's utility function is U2, y) = xy(1 - xy). Bob's utility function is U(x,y) = -1/(10+ 2xy). Mark's utility function is U (2,y) = x(y + 1,000). Pat's utility function is U (2,y) = 0.5cy - 10,000. Billy's utility function is U (x,y) = x/y. Francis' utility function is U (x,y) = -ry. a. Who has the same...

  • 3. Suppose the utility function for two goods, x and y, is: U = U(x,y) =...

    3. Suppose the utility function for two goods, x and y, is: U = U(x,y) = xłyż. a. Graph the indifference curve for U = 10. b. If x = 5, what must y equal to be on the U = 10 indifference curve? What is the MRS at this point? c. Derive a general expression for the MRS for this utility function. Show how it can be interpreted as the ratio of the marginal utilities. d. Does this individual...

  • 3. Suppose that Bob’s preferences can be represented by the utility function u(x, y) = 32x^0.5...

    3. Suppose that Bob’s preferences can be represented by the utility function u(x, y) = 32x^0.5 + y. The MUx = 16x^-0.5 and MUy = 1. (a) Determine Bob’s demand functions for x and y. (b)If the price of x is $8, and Bob’s income is $1000, how many x would Bob consume? How much income would be devoted to spending on y? (c) Suppose that the price of x doubles to $16. Calculate the income and substitution effects. (d)Is...

  • A consumer has preferences represented by the utility function u(x, y) -xlyi. (This means that a....

    A consumer has preferences represented by the utility function u(x, y) -xlyi. (This means that a. What is the marginal rate of substitution? b. Suppose that the price of good x is 2, and the price of good y is 1. The consumer's income is 20. What is the optimal quantity of x and y the consumer will choose? c. Suppose the price of good x decreases to 1. The price of good y and the consumer's income are unchanged....

  • 1. Consider an agent with preferences represented by the utility function: u(x,y) = xy (a) For...

    1. Consider an agent with preferences represented by the utility function: u(x,y) = xy (a) For each pair of bundles, indicate which is preferred or if they are indifferent between the two. Show your work. (4 points) A (3,9) B(2,8) ------------ C(4,7) D(8,8) E (5,20) F(10,10) G(5,9) H(12,4) (b) Using the bundles in (a), make a list that orders the bundles according to the agent's preferences. Start the descending list with the most preferred bundle and end with the least...

  • Molly consumes two goods, good x and good y and her preferences are represented by the...

    Molly consumes two goods, good x and good y and her preferences are represented by the utility function U (x, y) = 1/2x^2 + 4y. 1. Draw (sketch) Molly’s indifference curves for U(x,y) = 10, U(x,y) = 16, U(x,y) = 24 and for U(x,y) = 32.5. 2. Do Molly’s preferences satisfy strict monotonicity? Explain briefly 3. Do the indifference curves you’ve drawn reflect preferences that are convex? Explain briefly

  • 2. (24 points) Suppose a consumer has preferences represented by the utility function U(X,Y)- X2Y Suppose...

    2. (24 points) Suppose a consumer has preferences represented by the utility function U(X,Y)- X2Y Suppose Py, and the consumer has $300 to spend. Draw the Price-Consumption Curve for this consumer for income values Px-1, Px 2, and Px- 5. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT